2025
9
UK Dairy Alternatives Market Report 2025
2025-12-29T20:01:22+00:00
REP3834D997_1310_40BE_A394_6CCC0718ADDC
2195
189976
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Report
en_GB
The UK dairy alternatives category returned to value growth in 2025, with sales up 3.6% to £692 million. Volumes stagnated in most categories, with value growth fuelled by inflation and…
UK
Vegan and Plant-based
Dairy and Dairy Substitute Drinks
simple

UK Dairy Alternatives Market Report 2025

"Value growth returned in 2025. Inflation will be the main driver of rising sales. Building confidence in how to use dairy alternatives is crucial to unlock growth."

Sam Fryers, Research Analyst

Sam Fryers, Research Analyst

UK Dairy Alternatives Industry – Trends and Insights

  • The UK dairy alternatives market returned to value growth in 2025. Volumes stagnated in most categories, with value growth fuelled by inflation and the success of selected pricier brands and categories, such as yogurt. This speaks to added value opportunities in the category despite the pressures on household budgets.
  • Dairy alternatives usage has risen to 40% in 2025, up from 31% in 2023. Under-45s and parents are key user groups. The image of these products as highly processed and uncertainty about how to use them pose threats to the category. Cutting across these with communication and NPD can set brands apart in the competitive category.
  • Occasion-specific formats and flavoured variants tailored to specific uses hold potential in combating confusion about usage, and hence for winning over new users and unlocking new occasions. Such specific targeting also allows brands to focus on excelling on a smaller number of product attributes. The success of plant-based barista milks offers a case in point.

This Report Looks at the Following Areas:

  • Performance of the dairy alternatives market amid the income squeeze and up to 2030
  • The competitive landscape, including 2024/25 star performers
  • Key trends in launch activity and future product development opportunities
  • Usage of different types of dairy and dairy alternatives products
  • Factors most important to buyers when purchasing dairy alternatives, including opportunities in positive nutrition
  • The barriers posed by uncertainties on how to use dairy alternatives in recipes, and how flavour innovation and tailoring products to specific uses can mitigate this

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for dairy alternatives
    • Opportunities
    • Protein holds further potential in dairy alternatives
    • Address uncertainty about dairy alternatives choice
    • Target specific usage occasions
  2. THE MARKET

    • Snapshot – market size and forecast
    • Weak consumer confidence keeps food spend under scrutiny
    • Graph 1: financial confidence and wellbeing indices, 2016-25
    • Sustainability remains pertinent
    • Prevalence of healthy lifestyles brings opportunities and challenges for dairy alternatives
    • Population growth will support demand for dairy alternatives
    • Graph 2: population, by age, 2020, 2025 and 2030
    • Market size and forecast
    • 20% value growth predicted over 2025-30
    • Graph 3: retail value forecast for dairy alternatives, 2019-30
    • Milk and yogurt grow value sales while cheese struggles
    • Graph 4: retail value sales of dairy alternatives, by segment, 2023-25
    • Alpro retains top position in dairy alternatives
    • Graph 5: leading brands’ sales in the dairy alternatives retail market, by value, 2022/23-2024/25
    • Plenish and Coconut Collab shine in 2024/25
  3. THE CONSUMER

    • Usage of dairy and dairy alternatives
    • Two in five eat/drink dairy alternatives
    • Graph 6: usage of dairy and dairly alternatives, by broad type, 2023-25
    • Dairy alternative milk holds lead in usage
    • Under-45s and parents drive dairy alternative usage
    • Graph 7: usage of any dairy alternatives, by age, 2025
    • Address uncertainty about how to use dairy alternatives
    • Widespread confusion about dairy alternatives in recipes
    • Combat confusion about dairy alternatives in recipes to boost usage
    • Offer detailed usage guidance on pack
    • Match flavours to recipes to guide decision making
    • Place dairy alternatives near ingredients and cuisines they complement in store
    • Tie-ups and bundles with familiar brands offer a way to drive sales
    • Leverage positive nutrition in dairy alternatives
    • Still room for high-protein launches in dairy alternatives
    • High/added protein claims in dairy alternatives lag behind dairy
    • A need for dairy alternatives to spotlight protein quality
    • Dairy alternatives can tap interest in hormonal support
    • Position dairy alternatives for specific usage occasions
    • Nearly nine in ten dairy users think they will always consume some dairy
    • Similarities with dairy are essential for those who use both dairy alternatives and dairy
    • Room for more dairy alternative launches tailored to specific usage occasions
    • Tailored flavour and usage cues can open up cooking occasions and usage in recipes
  4. PRODUCT, INNOVATION AND MARKETING

    • Milks spotlight fortification and functionality
    • Milk NPD targets coffee and tea occasions
    • Alpro and POTINA launch ranges aimed at children
    • Big dairy brands call out recipe improvements in plant-based ranges
    • Cheese attracts varied NPD
    • Nush and Coconut Collab spotlight the positives
    • Brands slashed adspend on dairy alternatives in 2024
    • Graph 8: total above-the-line, online display and direct mail advertising expenditure on dairy and milk alternatives, 2021-25*
    • Brands embrace experiential marketing
  5. APPENDIX

    • Report scope
    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • Retail sales and forecast for dairy alternatives
    • Market forecast and prediction intervals
    • Market size of dairy alternatives, by segment
    • Market share
    • Dairy alternatives – value brand sales
    • Dairy alternatives – value manufacturer sales
    • The consumer
    • Consumer research questions
    • Consumer research methodology – EMEA
    • UK generation groups
    • Other data source methodologies
    • Mintel Spark
    • Nielsen Ad Intel coverage
    • Abbreviations

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